Salient to Investors: George Soros said: The world still does not fully understand how financial markets work – the established theory has collapsed. Germany is out of tune with the rest of the world in handling the euro crisis. There is a risk of a credit bubble, the big, unresolved
READ MORE... →Salient to Investors: Ray Dalio at Bridgewater Associates said: 2013 will be a game changer for the economy as investors reallocate money – currently getting very bad returns – after risks including Europe’s sovereign debt crisis receded. Money will move into stocks and other assets, as well as into goods and services Central banks
READ MORE... →Salient to Investors: George Soros said institutions that invest in hedge funds should expect poor performance because of high fees – typically 2 percent of assets and 20 percent of returns – and because hedge funds are such a dominant force in the market, so can’t, as a group, outperform it. Soros
READ MORE... →Salient to Investors: Christin Tuxen at Danske Bank predicts gold will average $1,720 an ounce in 2013 as central-bank stimulus will sustain buying as a hedge against inflation and currency devaluation, and $1,600 in 2014 as economic growth curbs demand. Tuxen said the prospect of the Fed stopping easing and improving economic activity
READ MORE... →Salient to Investors: Billionaire hedge fund managers have been heavily buying gold. John Paulson has been accumulating gold and gold mining stocks at a fevered pace. George Soros, Louis Moore Bacon, Julian Robertson et al have been buying gold, mining equities and ETPs. Bill Gross at Pimco has urged investors to buy precious metals. George
READ MORE... →Salient to Investors: Gold producer shares head for the first back-to-back annual drop since 1998 despite gold’s 12 years of gains because of failure to control expenses – the average cost to extract an ounce of gold by the largest miners rose 23 percent to $584.70 in 2011 versus a drop of 12 percent to
READ MORE... →Salient to Investors: Gold is headed for a 12th consecutive annual gain, the longest streak in data going back to 1920. Bullion held through ETPs reached a record 2,603.7 tons on Nov. 16, exceeding the official reserves of every nation except the U.S. and Germany. Investors bought 247 metric tons through
READ MORE... →Salient to Investors: George Soros and Och-Ziff Capital Mgmt added stakes in AIG in Q3. Daniel Loeb at Third Point and Richard Perry at Perry Capital reported AIG stakes in Q3. Josh Stirling at Sanford C. Bernstein said primary insurers are trading at levels well off recent highs. Read the full article at http://www.bloomberg.com/news/2012-11-15/soros-joined-och-ziff-betting-on-aig-before-sandy-struck-u-s-.html
READ MORE... →Salient to Investors: Mark Smallwood at Deutsche Bank said gold is increasingly being used as a monetary instrument as more high net-worth individuals seek to protect their wealth from the risk of rising inflation, with an increased preference for physical holdings. Holdings in gold-backed exchange-traded products reached an all-time high yesterday. Bank of America said
READ MORE... →Salient to Investors: Bloomberg reports the overall bullish outlook of analysts extended for an 18th week. Buyers bought the more exchange traded products this quarter than in two years. Hedge funds et al more than doubled net-long position since July 24 to the most since Feb. 28. Bank of America predicts gold at $2,000 by
READ MORE... →